In accordance with the Fair Labor Standards Act of 1983 and 1985, as amended
Section 7, part 778, it is the policy of the University to pay non-exempt employees
time and one-half of their regular hourly rate, for all hours worked in any
work week in excess of the maximum of forty (40) hours, or provide compensatory
time off for those eligible under the 1985 amendment. Your immediate supervisor
has the right to approve/deny the accumulation of compensatory time.

Exempt employees are those in executive, administrative, managerial
and professional positions, whose duties, responsibilities and type of work
exempt them from the minimum wage and overtime provisions of the Fair Labor
Standards Act.

Non-exempt employees are those involved in routine office, or manual
types of work, under direct supervision of an administrator, and paid on an
hourly basis, who are subject to the minimum wage and overtime provisions of
the Fair Labor Standards Act.

Student employees of the University are limited to working nineteen
(19) hours in a week during the academic year, and forty (40) hours a week
during summer and semester breaks, and may not work any overtime hours.

Bargaining unit members, in addition to the law, are subject to contract
provisions regarding overtime or overload compensation.

The following procedures apply to all employees not exempted from the overtime
or compensatory time provisions of the Fair Labor Standards Act (as amended,
1985).

Employees in the Hourly-Paid Bargaining Unit and non-exempt employees in
the non-Union group (Administrative/ Professional):

Time and one-half the applicable regular straight time rate will be
paid to eligible employees for all hours worked in excess of forty (40)
hours per week. Hourly paid bargaining unit employees are also eligible
for overtime for all hours worked in excess of eight (8) hours per day. "Hours
worked" include all hours in which an employee is required to be on duty
at a prescribed workplace and all hours during which an employee is "suffered
or permitted" to work, as well as actual hours worked. The computation
for overtime pay will be made at one and one-half times the regular straight
time rate that applies for the starting shift. For the purpose of computing
overtime pay for over forty (40) hours in an employee's work week, a
holiday, a sick day, or a vacation day for which the employee receives
pay will be counted as a day worked.

Employees may not work any additional time outside of their regular
eight-hour schedule without prior approval of their supervisor.
It is the responsibility of the supervisor to ascertain that no employee
is permitted to work any unauthorized time over the normal eight-hour
schedule.

Overtime hours worked must be reported on the bi-weekly time sheets,
in the pay period in which the work is performed. Payment of overtime
must be approved on the employee's time sheet with the signature of the
appropriate approving authority. All overtime worked must receive prior
permission from the immediate supervisor before it is performed.
Account executives must insure that funds are available to cover overtime
cost before approval is granted.

Employees in the Hourly-Paid Bargaining Unit and non-exempt employees
in the non-Union group (Administrative/ Professional):

Compensatory time (defined as hours when employee is not working and
which are paid for at the employee's regular rate of pay) will replace
overtime pay whenever possible as follows:

Accrual: Compensatory time will be accrued for all hours worked
over forty (40) hours in one week at the University by a non-exempt,
non-union employee, at the rate of one and one-half hours for each hour
worked over forty in one week, up to a maximum of 240 hours (160 hours
overtime worked). In calculating compensatory time in an employee's work
week, holidays, sick days, and vacation days for which the employee received
pay will be counted as days worked.

Exception: Non-exempt administrative staff may volunteer, by
signing a written agreement (LSSU 346C) to teach as adjunct faculty at
the normal adjunct faculty rate and be exempted from overtime for that
assignment only. This agreement must be signed in advance of the services
performed. Individuals may not volunteer to perform services of the same
type that they are primarily employed by the University to perform.

Use of/or Pay for Compensatory Time: Compensatory time may be
accumulated up to a limit of 240 hours (160 hours overtime worked) only,
and should be used as time off work within the current fiscal year. Application
for use of comp time must be made on an absence request form (LSSU 231A).
Overtime worked over the 160 hours accumulated will be paid in the pay
period in which it is earned, at the rate of one and one-half times the
hourly rate. On termination of employment or transfer to a different
department, all unused compensatory time will be paid to the employee
as overtime. Comp time hours taken as paid time off, are not counted
as hours worked in the week in which they are paid or used. Use of comp
time may not result in overtime for another employee.

Authorization: Approval for overtime work, whether paid or accrued
as comp time, must be obtained from the immediate supervisor prior to
the work being performed. Work outside of the department of an employee's
regular work assignment must have the prior approval of the department
head, since it may involve compensatory time off from the regular department
work assignment. Approval of overtime work is dependent upon the availability
of funds to cover this cost. Compensatory time must be agreed to in writing
by the employee prior to the work being performed on Form LSSU 346B.

Recordkeeping: It is the responsibility of the department head
to keep accurate written records of all compensatory time accrued by
employees in the department, and the dates on which the compensatory
time is used. Reconciliation of these records must be submitted to the
Human Resources Office, for inclusion in the employee's personnel file
on Form LSSU 346B on a monthly basis.

Transfers: Prior to transferring to another department, an employee
will be paid-off for all accrued compensatory time as overtime, by the
department in which such compensatory time was earned.

See Agreement between Lake Superior State University and Lake Superior
State University Educational Support Personnel, MEA-NEA, for review of
compensatory time guidelines for bargaining unit employees.

Definitions:

Exemption from the FLSA: Executive, administrative, managerial, supervisory
and professional (including faculty) employees are exempt from provisions of
the law and are not eligible for overtime pay or compensatory time off under
the law. (Faculty are covered by the overload compensation provisions of their
contract.) Certain Administrative/ Professional positions are classified non-exempt
as specified in the following paragraphs.

Non-Exempt Positions: All positions in the ESP Bargaining Unit are
non-exempt and subject to the overtime provisions of the FLSA and the union
contract.

In the non-union group (A/P) the following jobs are examples of non-exempt
positions which are subject to the overtime and/or compensatory time provisions
of the Fair Labor Standards Act as amended in 1985.